How To Calculate Pips For Bitcoin

I’m wondering how you can calculate pips for Bitcoin and other currencies. For the ones denominated in Bitcoin eg Dash or Litecoin or whatever I guess its relatively easy. But how do you calculate for currency pairs such as BTC/USD?

Would you do it in terms of the base currency eg for what 1 USD buys in Bitcoins? I’m getting a bit lost here! Any ideas?

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i would like to know this too, been watching ICT wusp. and i want to make monthly plan for this. anyone can help?

That is one really interesting question actually. I did some reading and testing (Demo accounts with 2 different brokers) and came up with the following conclusion: trading Bitcoin (BTCUSD) is similar to trading Gold (XAUUSD). Thus Bitcoin has no fixed value per pip (or at least I couldn’t find info about that), e.g. it depends on how much BTC – units are in 1.00 lot. Let’s say (I am almost 100% sure) the pip by Bitcoin is 0000.01. So if there are 10 BTC-units in 1.00 lot then 1 pip is 0.10 USD. If there are 100 BTC-Units in 1.00 lot then 1 pip is 1 USD.
Hope this helps at least a little :wink:

I don’t know for sure, but if you use the MT4 pip measurement tool for example on EURUSD if the tool is showing 1003 (on a 5 digit broker) that is a 100 pip move (100.3) on EURUSD, and so if you were trading with 1 standard lot ($10 a pip) you would have $1000 in profit.

On BTCUSD a 100 pip move with the same calculation as above will appear on the MT4 measurement tool as 100300 (100.300 pips) and so that would be a 100 pip move or $1000 when using 1 standard lot… unless I am mistaken.

Which MT4 pip measurement tool are you using?
I used the Crosshair to measure a change of price in GBPUSD from 1.28000 to 1.29000 (100) pips. It shows 1000 with the Crosshair, so as per MT4 logic 100 pips by FX are visualized as 1000.
For BTCUSD I measured again with the Corsshair a change of price from 2700.00 to 2800.00 (100 USD). It shows 100 000. Applying the MT4 logic for FX I divide by 10 and get 10 000, e.g. 100 USD change in price = 10 000 pips, so the pip BTCUSD should be 100 / 10 000 = 0.01
And what do you mean with a standard lot by Bitcoin? 1.00 Lot = 1 Bitcoin? If yes, a move of 100 pips will be 100 * 0.01 = 1 USD per Lot
I am really confused now LOL!

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I used the Crosshair tool too (did not know what it was called). And you said the same thing as me as far as the pip calculations. For the lot size what I meant was if I open a trade using 1.0 lots (not 0.1 or 0.01 etc.) and the Bitcoin moves 100.000 pips wouldn’t it be $1000 in profit?

100 000 (one hundred thousand) pips should mean a change in price for example from 2000 to 3000, so with a trade of 1.0 lot it will be $1000 profit/loss, e.g. you are right :slight_smile:

How to calculate pip values in Bitcoin trading:

  1. Volume: 1 BTC
    1 pip = 0.1 USD
    Therefore, for every 1 dollar movement in BTC/USD = 10 pips which is 1 USD because 1 pip = 0.1 USD
    (Ex. 4025 BTC/USD to 4026 BTC/USD)
  2. Volume: 10 BTC
    1 pip = 10(0.1 USD) = 1 USD
2 Likes

I want to know how to calculate pipe on bitcoin

Hi, I have one quick question, in Forex on mt4, when I used the Crosshair tool from pont ‘A’ to point ‘B’, it displays 3 numbers, days, pips (4th decimal number), rate at point ‘B’ which I understand very well. When I do the same thing with BTC chart, the middle value, is a large number. So how the pips are measured in BTC? Thank you.

Hello,
In my standard account, I have make an entry in price - 10720. Lot size was 0.10. When the market price goes in 10820 then showing profit $10. So, 100 pips gives 10 USD. Spread was $15. I hope it will little help to calculate pip value. :slight_smile:

Bitcoin trading is best for who maintain a high amount in their account.

Aminur Rahman

If you are using MT4, then try the following Formula:

Pip Value = lots x Volume x 0.01 (only for Cryptocurrency with 2 decimals for example BTC value = 4200.00)
Volume: units of the desire cryptocurrency per lot

Important: You must know how many BTC are included in 1 lot, and it depends on your Broker. The difference between trading with Forex and trading with Cryptocurrencies is that the Volume (amount of currency per lot) is different for each Broker in Cryptocurrency but it is the same for all Brokers in Forex (with Forex 1 lot is always 100,000 units of the base currency). The second important point is to know how many Pips you want to trade of the desire cryptocurrency. For example, BTC moves at least 4000 pips normally per day. If the actual BTC value is 4,200.00 USD and after one hour its value is 4,220.51 USD, it has moved 2051 Pips. 1 pip = 0.01. Once you know that, then use the formula.
Example 1:
Broker A: 1 lot = 10 BTC and I want to buy 1 lot and trade 5000 pips (Stop loss 5000 pips under the actual price). BTC actual price 4216.71 USD, my SL 4166.71 USD (5000 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 10 x 0.01
Pip Value= 0.1 USD
If I want to trade with 5000 pips, then 0.1 USD x 5000 = 500 USD. That means that I can win or lose 500 USD.

Example 2:
Broker B: 1 lot = 1 BTC and I want to buy 1 lot and trade with 5000 pips. BTC actual price is 4216.71 USD, my SL 4166.71 USD (5000 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 1 x 0.01
Pip Value= 0.01 USD
If I want to trade with 5000 pips, then 0.01 USD x 5000 = 50 USD. That means that I can win or lose 50 USD.

If you want to trade with other cryptocurrencies, you can use the same formula. ETH moves at least 850 pips per day. If ETH value is 116.00 USD and after one hour its value is 124.52 USD, it has moved 852 Pips. 1 pip = 0.01.
Example 3:
Broker A: 1 lot = 100 ETH and I want to buy 1 lot and to trade 800 pips (Stop loss 800 pips under the actual price). ETH actual price 116.33 USD , my SL 10.33 USD (800 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 100 x 0.01
Pip Value= 1 USD
If I want to trade with 800 pips, then 1 USD x 800 = 800 USD. That means that I can win or lose 800 USD.

Example 4:
Broker B: 1 lot = 1 ETH and I want to buy 1 lot and trade with 800 pips. ETH actual price 116.33 USD , my SL 10.33 USD (800 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 1 x 0.01
Pip Value= 0.01 USD
If I want to trade with 800 pips, then 0.01 USD x 800 = 8 USD. That means that I can win or lose 8 USD.

Now, if I know how much money I want to risk, how can I know how many lots of BTC or ETH do I have to buy?
Just use the following Formula:
Lots= Risk/ Stop limit (pips) x pip Value

Important: You must know how many BTC or ETH are included in 1 lot with your Broker
Example 1:
I want to buy BTC but just win or lost 100 USD with a stop loss of 6000 pips. My Broker is A, that means that 1 lot=10 BTC. The actual price of BTC is 4216.71 USD, my stop limit is 4156.71 USD (6000 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 10 x 0.01
Pip Value= 0.1 USD
Then,
Lots= Risk/ Stop limit (pips) x pip Value
Lots= 100 USD / SL 6000 pips x 0.1 USD
Lots = 0.16
That means that I must buy 0.16 lots with Broker A in order to win or loss 100 USD with a SL of 6000 pips.

Example 2:
I want to buy BTC but just win or lost 100 USD with a stop loss of 6000 pips. My Broker is B, that means that 1 lot=1 BTC. The actual price of BTC is 4216.71 USD, my SL is 4156.71 USD (6000 pips)

Pip value = lots x Volume x 0.01
Pip Value= 1 x 1 x 0.01
Pip Value= 0.01 USD
Then,
Lots= Risk/ Stop limit (pips) x pip Value
Lots= 100 USD / SL 6000 pips x 0.01 USD
Lots = 1.66
That means that I must buy 1.66 lots with the B Broker in order to win or lose 100 USD with a SL of 6000 pips.

Example 3:
I want to buy ETH but just win or lost 100 USD with a stop loss of 800 pips. My Broker is B, that means that 1 lot=1 ETH. ETH actual price is 116.33 USD , my SL 10.33 USD (800 pips)
Pip value = lots x Volume x 0.01
Pip Value= 1 x 1 x 0.01
Pip Value= 0.01 USD
Then,
Lots= Risk/ Stop limit (pips) x pip Value
Lots= 100 USD / SL 800 pips x 0.01 USD
Lots = 12.5
That means that I must buy 12.5 lots with the B broker in order to win or lose 100 USD with a SL of 800 pips.

The same for other cryptocurrencies.
Important note: The spread for BTC is normally high for regulated Brokers. Take in mind that the spread range nowadays can be 1500-6000 pips (with Coins with 2 decimals like ETH = 101.00). That mean that you must trade with higher pips in order to take profit. You can visit the web page of your broker in order to know the spread.

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a). A movement from 7,347.99 to 6,916.28 will be -8.63 USD using a 0.02 lot size.

7,347.99 - 6,916.28 = 431.71 * 0.02 = $ 8.6342

b). A movement from 7,305.925 to 6,898.66 will be -4.07 USD using a lot size of 0.01.

7,305.925 - 6,898.66 = 407.265 * 0.01 = $ 4.07265

:stuck_out_tongue_winking_eye: :money_mouth_face:

Go to this website. This will answer not only yours but everyone else who comes to this forum. Your welcome!

.investing.com/tools/profit-calculator

I don’t see this helping with pip value Profit only…